Mulberry Group today said it was taking steps to streamline its operations and improve margins under its new CEO Andrea Baldo after the British luxury brand reported its first-half loss widened from a year ago.
The luxury handbag maker blamed tough market conditions, including low consumer confidence in the UK, its largest market, and said it would review its team structures and distribution strategies as part of efforts to cut costs.
It did not provide further details.
"There is no question that our industry is facing a period of significant uncertainty, driven by a challenging and volatile macroeconomic environment that is impacting consumer confidence in several markets, particularly in our home country," said Baldo, who has been in the role for less than three months.
Luxury brands have been struggling globally, as price hikes and economic uncertainty shrink the industry's customer base, with prolonged economic weakness in China pressuring retailers' margins and acting as an additional drag.
Mulberry shares fell 6.8% to 110 pence in early trading after the group said its underlying loss before tax widened to £15.3m for the 26 weeks ended September 28 from £12.3m reported a year ago, while first-half global revenues fell 19% to £56.1m.
Its shares are down nearly 30% so far this year.
Mulberry is banking on the festive season to drum up sales, saying trading is expected to be weighted towards the second half after a tough period.
The company recently rejected takeover approaches from its second-biggest shareholder Frasers due to lack of support from its top investor, and in the past few months appointed a new CEO and raised capital in a bid to turn around its business.
Burberry also laid out a turnaround plan last week to cut losses and win back customers.
